I contribute an article to my homeowner's association quarterly newsletter. It's gives me great exposure with minimal costs and it provides a valuable service to my community. Below is the article for our May Newsletter it has great information that is useful to everyone, consumers and REALTORS alike.
REAL ESTATE CORNER
By Jay Susslin, Realtor
504-723-5403
Jay@JaySusslin.com
I regularly receive questions regarding remodeling projects. Homeowners want to know what they should change or update to keep up with the trends and allow them to recoup the highest return upon resale of their home. Fortunately, most homeowners understand that in a down market it is imperative to re-invest in their properties to keep their homes updated and to avoid obsolescence in the market. Remodeling projects can vary in degree from minor repairs to major renovations. Generally, a remodeling project is undertaken to allow for a growing family, to keep up with changes in the homeowner's style or tastes, to do routine repairs, or to prepare a home for resale by increasing its market appeal.
In a hot market with rapidly rising property values, a remodeling project can add resale value to the home in an amount that far exceeds the costs of the remodel. We can all agree our market is lukewarm, so this factor is really not in play for Plantation Estates. Even in a sluggish market home remodeling is a wise decision that allows you to protect your home as an investment.
The current state of the market has created a higher level of expectation from buyers as they walk through comparable properties. In the buyers' mind the homes of a particular community, such as Plantation Estates, should meet a minimum standard. Oftentimes savvy buyers won't even get out the car because the property fails to meet that level. Buyers arrive at a home showing well informed with lots of information about the house attainable through the Multi-Listing System used by local real estate agents to assist in marketing properties to other agents and the general public. This easily accessible web-based system allows for the inclusion of property details including descriptions and photographs of amenities and the condition of the property's interior and exterior. If you have allowed your home to fall behind the current trends or below buyer expectations you may find your home is not even a consideration in the market.
Homeowners undertaking remodeling projects that will bring their home in line with a minimum standard for a neighborhood and within the crosshairs of potential buyers' sight line will expect to be able to recoup more than 100% of the costs of the upgrade.
Recently, for example, buyers have come to expect solid surface or granite kitchen counters in a home in Plantation Estates. The resale price of the home can be adversely affected by the lack of such a kitchen amenity. Oftentimes buyers will simply pass on a house or negotiate down, over compensating for actual costs, to replace such an amenity. A homeowner who contracts to install granite might well be able to recoup 100% of the entire costs of the project because it has brought the home in line with the buyer's expectations.
Other remodeling projects will not only make your home more attractive and elevate your day-to-day comfort but will prove to be a great value. A list of popular home remodeling projects and their estimated costs vs. value comparison can be found on my website at JaySusslin.com.
Plantation Estates Real Estate Market: Currently, we have fourteen homes on the market. Between January 1, 2008 and March 31, 2008, two homes sold at an average rate of 94% of the final list price.
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